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Thread: SIRI Daily Thread Wed 3.13.13 - Compound Wednesday!

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  1. #1
    midas360 is offline
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    SIRI Daily Thread Wed 3.13.13 - Compound Wednesday!

    "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it."

    I am having problems sleeping so I decided to start Wednesday's thread a little early. I hope you guys don't mind. Have you noticed that every where you read and whatever channel you watch, analysts are talking about the Dow setting new record highs? They are even saying it is going higher too. Doesn't this make you nervous? It makes me very nervous... Maybe it's time to become a little more defensive with our trades? Maybe take some profits and go to cash? I am pretty much in cash except for my income generating investments. It's time to take a breather. What do you guys think?

    With all this interest free money swirling about... I often wonder if we are going down Credit Bubble Road.




  2. #2
    midas360 is offline
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    Futures are red but it's still early. Anything can happen. Good luck to everyone and happy trading!

  3. #3
    yoda4x4 is offline
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    Quote Originally Posted by midas360 View Post
    "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it."

    I am having problems sleeping so I decided to start Wednesday's thread a little early. I hope you guys don't mind. Have you noticed that every where you read and whatever channel you watch, analysts are talking about the Dow setting new record highs? They are even saying it is going higher too. Doesn't this make you nervous? It makes me very nervous... Maybe it's time to become a little more defensive with our trades? Maybe take some profits and go to cash? I am pretty much in cash except for my income generating investments. It's time to take a breather. What do you guys think?

    With all this interest free money swirling about... I often wonder if we are going down Credit Bubble Road.


    I have to agree. This country, or should I say our fearless moron at the helm, is spending cash at a rate that is simply irresponsible without any attempt at a balanced budget. For this reason alone, we all should be extremely cautious. Now with that said, there is money to be made here if you can make a few quick trades before what I believe will be an impending implosion in the American economy.

    David

  4. #4
    midas360 is offline
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    Good point(s) Yoda! Also, think about it for a moment. Remember the mortgage crisis where unqualified people were getting hundreds of thousands in loans for a home? Nothing had really changed, but shifted to another credit facility. Now they are giving interest free loans for pretty much any and everything. For example, I just purchased a new iMac and took advantage of their 18 month interest free financing. After filling out a quick and easy form of basic questions, I got $5,000 in instant credit. Now imagine all the people buying cars, computers, carpet, etc. Most are probably taking advantage of the interest free money too. What happens when the economy gets worse and these people have no job? Lots of people in debt folks...

    Quote Originally Posted by yoda4x4 View Post
    I have to agree. This country, or should I say our fearless moron at the helm, is spending cash at a rate that is simply irresponsible without any attempt at a balanced budget. For this reason alone, we all should be extremely cautious. Now with that said, there is money to be made here if you can make a few quick trades before what I believe will be an impending implosion in the American economy.

    David

  5. #5
    switchflare is offline
    Quote Originally Posted by midas360 View Post
    Good point(s) Yoda! Also, think about it for a moment. Remember the mortgage crisis where unqualified people were getting hundreds of thousands in loans for a home? Nothing had really changed, but shifted to another credit facility. Now they are giving interest free loans for pretty much any and everything. For example, I just purchased a new iMac and took advantage of their 18 month interest free financing. After filling out a quick and easy form of basic questions, I got $5,000 in instant credit. Now imagine all the people buying cars, computers, carpet, etc. Most are probably taking advantage of the interest free money too. What happens when the economy gets worse and these people have no job? Lots of people in debt folks...
    I too am sitting almost entirely in cash and I hate sitting in cash. One small bright spot of the past few years is that household debt levels have supposedly fallen to levels not seen since the early 80s, so hopefully people are starting to figure things out. I'm still pretty young and have managed pretty well financially to date, but I absolutely fear for my kids. Their opportunity pool is being squeezed continually and the debt expectations are rising without any relief in sight.

  6. #6
    midas360 is offline
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    @Switch... have you ever thought about opening custodial accounts for your children and investing in dividend stocks? Pick a few and let the dividends compound over time. You can have dividend reinvested back into the stock? Here is a neat little tool to calculate it. It may not be practical for lets say for you or your wife but the kids have plenty years ahead of them.

    Compound Dividend Reinvestment Calculator

    Quote Originally Posted by switchflare View Post
    I too am sitting almost entirely in cash and I hate sitting in cash. One small bright spot of the past few years is that household debt levels have supposedly fallen to levels not seen since the early 80s, so hopefully people are starting to figure things out. I'm still pretty young and have managed pretty well financially to date, but I absolutely fear for my kids. Their opportunity pool is being squeezed continually and the debt expectations are rising without any relief in sight.

  7. #7
    yoda4x4 is offline
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    Quote Originally Posted by midas360 View Post
    @Switch... have you ever thought about opening custodial accounts for your children and investing in dividend stocks? Pick a few and let the dividends compound over time. You can have dividend reinvested back into the stock? Here is a neat little tool to calculate it. It may not be practical for lets say for you or your wife but the kids have plenty years ahead of them.

    Compound Dividend Reinvestment Calculator
    midas - that's an interesting idea. Question for you or anyone els for that matter, which trading platforms allow for DRIPs? I know that Scottrade does not, which happens to be the one I'm using.

    David

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